- Australian Centre for Disease Preparedness—Electrical Infrastructure Replacement, Geelong, Victoria
Commonwealth Science and Industrial Research Organisation
4.1The Commonwealth Science and Industrial Research Organisation (CSIRO) seeks approval from the Committee to proceed with the proposed Australian Centre for Disease Preparedness—Electrical Infrastructure Replacement project in Geelong, Victoria.
4.2The CSIRO Australian Centre for Disease Preparedness (ACDP) is a purpose-built biosecurity facility. The ACDP is Australia’s national reference laboratory and forms part of the nation’s biosecurity response system. The biosecurity facility protects Australia’s livestock and aquaculture industries from exotic and emerging infectious animal and zoonotic diseases including, Foot and Mouth Disease, Hendra virus, and avian influenza.
4.3This project seeks to replace the site’s ageing electrical infrastructure. This will reduce the risk of failure of electrical supply to and distribution within the ACDP site and assure the continuity of the site’s operations.
4.4The works will also feed into a multi-stage, part-life refit of the centre to enable ACDP to continue operations as a purpose-built and compliant high-containment facility for the next 30 years. This intended upgrade will modernise lab spaces and upgrade large, fixed lab equipment within the facility as it reaches end of life. CSIRO intends to refer this project to the Public Works Committee in 2025
4.5The estimated cost of delivery of the project is $29.90 million (excluding GST).
4.6The project was referred to the Committee on 20 August 2024.
Conduct of the inquiry
4.7Following referral, the inquiry was published on the Committee’s website.
4.8The Committee received one submission, two confidential submissions and one supplementary submission. A list of submissions is in Appendix A.
4.9On 28 October 2024, the Committee received a private briefing, and then conducted a public and in-camera hearing at Australian Parliament House, Canberra. A transcript of the public hearing is available on the Committee’s website.
Need for the works
4.10The ACDP has been in operation since 1985 and is approaching the 40th year of its planned 100-year operational life. The electrical infrastructure providing power reticulation and redundancy at ADCP was installed with the original facility’s construction in 1985. This infrastructure, including switchboards, cabling and generators for backup power, have had preventative maintenance over the past 40 years. The instances of reactive maintenance through emergency repairs have increased over the past decade.
4.11A May 2023 report on the condition of key assets identified a range of fixed electrical assets in urgent need of replacement. The assets include standby diesel generators, high and low voltage switchboards, and power reticulation across the site.
4.12As the standby generators are over 40 years old, parts for the machines are no longer manufactured nor serviceable, meaning the switchboards can no longer be safely operated. The switchboards to the Animal Entry Building (AEB) and Engineering Services Building (ESB) are leaking oil. The full list of deficiencies is:
- The generators are over 40 years old and their operation has become unreliable. Parts are no longer serviceable for the diesel engines as the equipment is no longer manufactured.
- The switchboards currently have a very high arc flash rating 49.7 cal/cm2. Arc flash suits are only rated to 40 cal/cm2 which poses a hazard to employees that are required to switch the MD boards during service of plant and equipment.
- Some switchboards and power supply switches are end of life with no parts available to support repair.
- The inground high voltage cabling is 40 years old and will require replacement soon.
- The consequences of electrical failure at the facility were pointed out during the public hearing:
If the facility lost power, then the key biocontainment controls, the ceiling of the facility and the negative pressure gradients would no longer be maintained. It would cause the facility obviously to cease operations, and we would need to take action to make things safe and temporarily seal the facility.
Options considered
4.14CSIRO considered three options to determine the best response to the site’s business need:
- Option 1 – The ‘Base Case’: no additional capital funding would be acquired to replace the electrical assets, and they would continue to be operated and repaired according to current procedures and maintenance plans.
- Option 2 – Electrical Infrastructure Procurement (Leased Generators): CSIRO would procure, install, commission, and test three standby diesel generators, four low voltage main switchboards, two switchboards, one incoming main switch and the inground cabling. The three standby generators would be held under a long-term lease.
- Option 3 – Electrical Infrastructure Procurement (Purchased Generators): CSIRO would procure, install, commission, and test three standby diesel generators, four low voltage main switchboards, two switchboards, one incoming main switch and the inground cabling. Instead of a leasehold arrangement, CISRO would purchase three standby generators and add them to the ACDP capital asset register.
- Although Option 1 would not immediately disrupt the ACDP site, it was discounted as repair and maintenance costs would increase over time, electrical supply would be subject to significant and growing risk, and there would be increased work health and safety risks (WHS). Short and long-term failures would accumulate over time and eventually maintenance would be unable to prevent system collapse.
- Option 2 would realise the project objective of assurance of the electrical power supply and allow for increased flexibility to replace and upgrade leased generators in a shorter timeframe. However, this option is more costly, would disrupt site operations during construction, and reduce CSIRO’s control over the leased generators due to third-party ownership of critical assets.
- Option 3 was selected because it achieves the project objective of assurance of the electrical power supply and provides the lowest out-turned whole of life cost, thereby presenting the best value for money.
Scope of the works
4.18The proposed scope of the project includes:
- replacement of three standby diesel generators
- replacement of four Machine Hall LV main switchboards
- replacement of 22kB AEB switchboard
- replacement of 6.6kV AEB switchboard
- replacement of 6.6kV ESB switchboard and additional network configuration
- replacement of F1 and F2 22kV incoming main switches
- replacement of inground 22kV cabling between front gate and the ESB and AEB.
- The works will be undertaken within the boundaries of the existing ACDP site. New cabling and generator handstands will be constructed adjacent to the existing facility to minimise site disruption.
- The works will be staged to enable the replacement generators and switchboards to be operational and commissioned prior to the decommissioning and removal of legacy equipment, and to ensure the ongoing operations of the facility.
Community and stakeholder consultation
4.21CSIRO contacted the following Commonwealth Government, State Government, and local organisation stakeholders in November 2022:
- Treasurer Hon Dr Jim Chalmers MP
- Minister for Industry and Science Hon Ed Husic MP
- Minister for Health and Aged Care Hon Mark Butler MP
- Minister for Infrastructure, Transport, Regional Development and Local Government Hon Catherine King MP
- Member for Corio Hon Richard Marles MP
- Member for Corangamite Ms Libby Coker MP
- Office of the Federal Safety Commissioner - Branch Manager and Federal Safety Commissioner Mr David Denney
- Ms Chris Couzens MP Member for Geelong
- Local Government Representative (Kurrajong)
- City of Greater Geelong Mayor Peter Murrihy
- Councillor for Brownbill Ward Sarah Mansfield
- Councillor for Brownbill Ward Eddy Kontelj
- Geelong Community Groups (Via Email)
- East Geelong Golf Course
- Geelong Botanical Gardens
- Triboys Basketball Centre.
- The stakeholders were sent letters that outlined the impact, expected benefits, and timeframes associated with the ACDP part-life refit project. Letters regarding the updated scope and program for the electrical infrastructure replacement works were to be sent to Federal and State Government stakeholders in July 2024.
- CSIRO staff working at the ACDP site have been kept informed about the project’s status throughout the planning and design process and will be notified of the project approval and construction period.
- CSIRO have convened safety in design workshops with stakeholders to identify, mitigate, and assign risk management responsibilities throughout the design, construction, operation, and decommissioning processes.
- A key consideration for the Head Contractor will be the assurance of WHS for CSIRO staff, works personnel, and those visiting the project site.
Cost of the works
4.26The projects budget is $29.90 million (excluding GST). The project will be funded internally from the CSIRO Capital Management Plan.
4.27CSIRO provided further details on project costs at the in-camera hearing.
Revenue
4.28There will be no revenue generated by the project.
Public value
4.29The ACDP provides the following capabilities:
- infectious disease preparedness and prevention, and control of Biosecurity Level 3 and 4 animal and zoonotic diseases
- bio-risk expertise and the provision of technical, scientific, and operation advice to the Commonwealth Government
- diagnostic and emergency response to current and future biosecurity threats against Australia
- management of critical national infrastructure to multiple regulatory frameworks securing sovereign capability
- accreditation as a reference laboratory and strong partnerships with domestic and international partners including the World Organisation for Animal Health, World Health Organisation, and the Department of Agriculture, Fisheries and Forestry.
- The biosecurity services provided by the ACDP have direct and indirect financial benefits through the avoidance or reduced impact associated with pandemic outbreaks. The value of this service was estimated at $653 million in 2019 and $700 million per annum as of 2023. The assurance of business continuity for the ACDP underscores the public value for this project.
- The works will involve traces of asbestos and insulating oil which may contain contaminants. The CSIRO advised that the risk of contaminants will be appropriately managed:
The transformer oil will be independently sampled and tested via a NATA accredited testing lab. Any electrical equipment found to contain PCB oils will be transported under EPA permit – for transport of PCB.
The equipment will be transported to EPA licensed organisations/facilities for treatment and disposal. Appropriate Certificate of disposal and destruction will be obtained (and registered with the EPA) for the equipment.
All movements and final disposal/treatment of PCBs and PCB contaminated equipment will be monitored and controlled through EPA and regulation guidelines.
Committee comment
4.32The Committee acknowledges the important work of the ACDP and the severe consequences that would result from any failure in biosecurity containment.
4.33The Committee did not identify any issues or concerns with the proposal, and it is satisfied that the project has merit in terms of need, scope and cost.
4.34Having regard to its role and responsibilities contained in the Public Works Committee Act 1969, the Committee is of the view that this project signifies value for money for the Commonwealth and constitutes a project which is fit-for-purpose, having regard to the established need.
4.35The Committee recommends that the House of Representatives resolve, pursuant to section 18(7) of the Public Works Committee Act 1969, that it is expedient to carry out the following proposed works: Commonwealth Science and Industrial Research Organisation — Australian Centre for Disease Preparedness—Electrical Infrastructure Replacement, Geelong, Victoria.
4.36Proponent entities must notify the Committee of any changes to the project scope, time, cost, function or design. The Committee also requires that a post implementation report be provided within three months of project completion. A report template can be found on the Committee’s website.
Mr Graham Perrett MP
Chair